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General Dynamics NASSCO Awarded $100 Million Contract for Tenth T-AKE's Long-Lead Materials

SAN DIEGO – General Dynamics NASSCO, a wholly-owned subsidiary of General Dynamics (NYSE: GD), has been awarded a $100 million contract from the U.S. Navy to purchase long-lead materials for the construction of a tenth T-AKE dry cargo-ammunition ship. NASSCO already is under contract to construct nine T-AKE ships at its shipyard.

“With three ships now delivered to the Navy and four additional ships under construction, we are pleased to be selected to build another T-AKE,” said Frederick J. Harris, president of General Dynamics NASSCO. “This contract demonstrates the customer’s confidence in the NASSCO shipbuilding team and our ability to build and deliver a high-quality ship on schedule.”

Under the contract, NASSCO will place orders for the ship’s engines and other components that have significant manufacturing lead times. A contract that funds construction of the ship is expected to be awarded by January 2008. Construction of T-AKE 10 is expected to begin in the first quarter of 2009; delivery to the Navy’s Military Sealift Command (MSC) is scheduled for the first quarter of 2011. The Navy is expected to order a total of 11 T-AKE ships for MSC service and three additional ships for its Maritime Prepositioning Force.

General Dynamics NASSCO employs more than 4,600 people and is the only major ship construction yard on the West Coast of the United States. In addition to the T-AKE program, the San Diego shipyard will soon begin construction on the first of nine product carriers for U.S. Shipping Partners L.P. More information about NASSCO can be found at www.nassco.com.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 82,600 people worldwide and had 2006 revenues of $24.1 billion. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available online at www.generaldynamics.com.

July 23, 2007
Contact: Karl D. Johnson
Tel: (619) 544-8860
Email: kjohnson@nassco.com